"In order to stop the bloodshed and stabilise the situation in southeast Ukraine, I believe that the parties to the conflict should immediately agree on and coordinate the following steps," he said.

His plan is as follows:

1. End active offensive operations by armed forces, armed units and militia groups in southeast Ukraine in the Donetsk and Lugansk areas.

2. Withdraw Ukrainian armed forces to a distance that would make it impossible to fire on populated areas using artillery and all types of multiple launch rocket systems.

3. Allow for full and objective international monitoring of compliance with the ceasefire and monitoring of the situation in the safe zone created by the ceasefire.

4. Exclude all use of military aircraft against civilians and populated areas in the conflict zone.

5. Organise the exchange of individuals detained by force on an ‘all for all’ basis without any preconditions.

6. Open humanitarian corridors for refugees and for delivering humanitarian cargoes to towns and populated areas in Donbass – Donetsk and Lugansk regions.

7. Make it possible for repair brigades to get to damaged settlements in the Donbass region in order to repair and rebuild social facilities and life-supporting infrastructure and help the region to prepare for the winter.

Putin said that the truce deal was agreed with Ukrainian President Petro Poroshenko during a telephone conversation, and the latter confirmed it. But at the same time Ukrainian Prime Minister Arseniy Yatsenyuk said Putin's announcement was meant to "pull the wool over the eyes of the international community ahead of the NATO summit and an attempt to avert the EU's inevitable decision to unleash a new wave of sanctions against Russia".

The announcement came at the eve of the Thursday NATO Summit where Western leaders plan to step up their defence of eastern Europe in the face of Russian "aggression".